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China protests see Japanese-related shares fall; Aeon at 7-mth low
September 17, 2012 / 6:03 AM / in 5 years

China protests see Japanese-related shares fall; Aeon at 7-mth low

HONG KONG, Sept 17 (Reuters) - Shares of Japanese-related retailers came under pressure on Monday on worries about the impact of anti-Japan protests on their business, with department store operator Aeon Stores (Hong Kong) Co Ltd falling to its lowest in seven months.

Major Japanese firms have temporarily shut factories and offices in China after one of the worst outbreaks of anti-Japan sentiment in decades.

Chinese demonstrators looted shops and attacked Japanese cars on the weekend to protest Japan’s decision to buy disputed East China Sea islands, which Tokyo calls Senkaku and Beijing calls Diaoyu, from a private Japanese owner.

“All Japan-related shares are under selling pressure as investors stayed away from those stocks, from chain operators to auto makers, which could be affected by anti-Japan protests,” said Andrew To, a research director from Emperor Capital.

Aeon Store, controlled by Aeon Company Ltd, fell as much as 7.3 percent to HK$18.72, their lowest since February 1. The stock was down 7 percent at 0527 GMT, lagging a 0.2 percent gain in the benchmark Hang Seng Index.

“Whichever company has a Japanese name is seen under pressure as investors worry that their bottom line will be hit if the protest continues,” said Alfred Chan, chief dealer at Cheer Pearl Investment.

Shares of Japanese-style noodle chain Ajisen (China) Holdings Ltd fell as much as 9.3 percent to their lowest since September 7.

Springland International Holdings Ltd said in a statement on the Hong Kong stock exchange that its Changxing Yaohan department store and Changxing Datonghua supermarket were damaged by protesters in Changxing city in Zhejiang province at the weekend, with losses estimated at millions of yuan.

The stock was down 0.8 percent in early afternoon trade.

The Hong Kong shares of Guangzhou Automobile Group Co Ltd , a joint venture partner of Mitsubishi Motors , fell nearly 5 percent.

Japanese electronics firm Canon Inc will stop production at three of its four Chinese factories on Monday and Tuesday, citing concerns over employees’ safety, Japanese media reports said, while All Nippon Airways Co reported a rise in cancellations on Japan-bound flights from China.

Toyota and Honda reported arson attacks had badly damaged their stores in Qingdao.

Tokyo has warned its citizens about large-scale protests in China on Tuesday, when China commemorates the anniversary of Japan’s 1931 occupation of parts of mainland China. (Reporting by Donny Kwok; Editing by Anne Marie Roantree and Michael Perry)

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